- Romania increased the standard VAT rate from 19 percent to 21 percent starting August 1, 2025
- Two previous reduced VAT rates of 5 percent and 9 percent were merged into a single reduced rate of 11 percent
- The 11 percent reduced rate applies to medicines, staple foods, certain cultural services, printed books, newspapers, energy services, and hospitality services excluding alcohol
- An exemption exists for qualifying housing transactions below RON 600,000 and under 120 sqm until August 1, 2026
- The changes aim to reduce public spending and increase state revenue
- The impact on Romania’s goals, including reducing the budget deficit and joining the Eurozone, is yet to be determined
- Businesses need to update their ERP and invoicing systems to comply with the new VAT system
Source: vatabout.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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